Blumberg in the News

BloombergBusiness wrote an article this week titled Pigeons Grow Fat in Egypt as Poor Storage Means Wasted Wheat, exploring the inefficiencies bedeviling food systems in the Middle East and North Africa. and featuring an interview with Blumberg Grain's David Blumberg. An excerpt follows:

As much as half of the wheat the state buys from its farmers is lost each year to pigeons, rodents and thieves scavenging national stockpiles that are often just stacked in rough jute bags open to the elements, said David Blumberg, whose U.S. company is working with the government to modernize and build the Middle East's largest grain-storage network.

"If you ever passed by a landfill and saw all the birds circling above, that's kind of the situation," said Blumberg, chief executive officer of Blumberg Grain, Middle East & Africa, referring to the facilities he's working on replacing. "There is no protective covering."

Wasted grain is a big problem for Egypt, where rising food prices intensified unrest that led to the overthrow of the government during Arab Spring protests in 2011. The country is the world's biggest wheat importer and spends billions of dollars on grain each year for a subsidized bread program to ensure its people can afford food.

The government buys about 40 percent of the country's wheat production each year, but waste isn't limited to the domestic crop. Poor infrastructure, port backlogs and aging storage sites mean a third of imported supply is also lost, said Gilles Mettetal, director of agribusiness at the European Bank for Reconstruction and Development.

To read the full article, click here. For more news and information visit Blumberg Partners.

Blumberg in the News

David Blumberg, Chief Executive Officer of Blumberg Grain – West Africa, was interviewed this month in Business Today Egypt in an article titled Blumberg Grain Provides Solutions to Egypt's Grain Spoiling Problem. An excerpt follows:

Egypt has a major issue with grain spoiling. Some 40% of grain spoils every year, why?
Egypt regularly faces post-harvest wheat losses of approximately 40% due to spoilage occurring in the traditional, open-air storage facilities currently being used, commonly known as Shouna. This loss is due to depletion by pests, pilferage, rot and inclement weather.

What is the solution that Blumberg Grain provide to this problem? And how much can it reduce the percentage of spoiled grain?
The Shouna Development Project is a unique collaboration between the Ministry of Supply, Ministry of Defense and Blumberg Grain. The first phase of the project will revamp 93 Shouna (of 164 total planned) located across the country with modernized food security warehouses, known as Blumberg Grain Aggregation Centers.

This first phase of the project will enable primary processing of 3. 7 million metric tons of wheat per year across a platform of 3.6 million square feet of storage space.

The project will create one of the world’s largest and most sophisticated integrated food security systems for grain storage.

The Blumberg Grain Aggregation Centers, when properly implemented, can reduce postharvest losses down to 5% or less. The system will support the government in recovering crops lost to post harvest losses, saving Egypt up to an estimated USD 200 million annually.

To read the full interview, click here. For more news and information, visit Blumberg Partners.

Blumberg in the News

Blumberg Grain was featured in an Ahram Online article titled Egypt will launch new wheat storage system next week. An excerpt follows:

Egypt will launch a new grain storage system next week, in the hope of reducing by a quarter the amount of wheat wasted annually, Supply Minister Khaled Hanafy announced on Tuesday.

The government signed an agreement with Blumberg Grain in December to replace 93 local wheat barns with food security technology and systems.

The new storage system will save Egypt an estimated LE1 billion annually, the US-based global food security company said.

The Army Engineering Authority, Egyptian Holding Company for Silos and Storage and the supply ministry are collaborating with Blumberg Grain to complete the project by the next harvest season in April.

To read the full article, click here. For more news and information, visit Blumberg Partners.

Blumberg in the News

Blumberg Grain was featured in an article from The Guardian total titled "Bread rationing and smartcards: Egypt takes radical steps to tackle food waste". An excerpt follows:

In order to achieve this Hanafi is currently finalising an £18m nationwide network of state-of-the-art grain storage facilities to keep government-purchased wheat. The first 105 of these shounas will open in April. "When we collect the wheat, we put it in open-air shounas, but this creates waste and a dramatic loss in quality," he says, pointing to birds, humidity, air pollution and rodents as the main problem areas. These new storage facilities are temperature-controlled, as well as being equipped with primary processing capacity to screen, clean, dry and bag wheat as well as other grain products.

There's even a command centre in Cairo, containing a software inventory management system and camera surveillance technology. David Blumberg of Blumberg Grain, the US specialist storage firm contracted to implement the project, claims the new system could save Egypt up to £130m per year. "The government can get a real-time view of the levels of inventory that they have across the entire shouna system," says Blumberg.

Blumberg has installed similar storage infrastructure in Senegal, Nigeria and the Democratic Republic of Congo, and is currently in discussions with various state governments in India to implement storage facilities for rice, onion and potatoes, as well as wheat.

Post-harvest waste has become a high-profile issue in recent years and governments are increasingly keen to find ways to cut food waste at every level. In sub-Saharan Africa alone, the estimated food that is lost after harvesting could feed 48 million people and exceeds the total food aid to the region.

To read the full article, click here. For more news and information visit Blumberg Capital Partners.

Blumberg in the News

Blumberg Grain was featured in a Miami Today article titled "Gables firm, Egypt partner for grain security" that looks into the company's progress in Africa and continued development of grain storage facilities to reduce post-harvest loss. An excerpt follows:

The company, which signed a contract with the Egyptian government late last year, is currently developing 93 wheat storage facilities across Egypt and expects the first few to be completed by the end of April, said David Blumberg, CEO of Blumberg Grain-West Africa.

He told Miami Today the facilities will process 3.7 million tons of wheat annually and store 750,000 tons, saving Egypt about $200 million a year.

"Post-harvest wheat loss in emerging markets is the primary problem for governments to solve," Mr. Blumberg said. "The loss, between harvest and first sale, is about 50% and due mainly to the lack of storage containers."

That's the ultimate goal of the Blumberg Grain project: to support the Egyptian government in recovering crops lost to post-harvest fatality.

Egypt is the world's largest importer of wheat and Africa's largest producer. However, there are numerous threats to grain in Egypt and other emerging countries, including pest attacks, rot, and theft – or what is referred to in the industry as "leakage." This leakage is often distributed to thieves' friends and family who sell the wheat on the black market.

Currently, Mr. Blumberg said, Egypt's wheat is stored in open-air storage facilities called shounas. He explained the wheat is received from farmers in bags and then stacked in piles, thus exposed to the sun and elements.

"There's a high likelihood that it will go bad due to the weather," Mr. Blumberg said. "The Egyptian pigeon is the worst pest and responsible for about 20% of the loss."

To read the full article, click here. For more news and information visit Blumberg Capital Partners.

Blumberg in the News

Blumberg Grain was featured in a CovAfrica article this week titled Egypt and Blumberg Grain Launch World's Largest Integrated Food Storage System, heralding the forthcoming construction of the world's largest integrated food storage system for grain. Launching this April, the 93 sophisticated wheat storage facilities across Egypt that will process 3.7 million tons annually and store 750,000 tons of wheat, saving Egypt approximately $200 million annually, in addition to creating jobs within Egypt's agricultural center. An excerpt from the article follows:

Egypt is the world's largest importer of wheat, as well as Africa's largest wheat producer. The country is intensely vulnerable to fluctuating international food prices, yet it commonly endures post-harvest grain losses of over 40% due to spoilage occurring in traditional, open-air "shouna" storage facilities. Blumberg specializes in the development of cost-effective, efficient storage systems that aim to reduce post-harvest losses to 5% or less. The new storage network will increase profitability and food security by storing, cleaning, and bagging grain products in climate-controlled, secure facilities throughout Egypt.

Following the political unrest that consumed Egypt in 2011, addressing Egypt's food security concerns through infrastructure development proved especially challenging. However, under the leadership of President Abdel Fattah Sisi and the Ministry of Supply and Internal Trade, infrastructure investment has become an increasing priority, and the government is open to investment partnerships. Under Blumberg's $28 million contract with the Egyptian government, the Egyptian army will build at least 93 wheat storage facilities using Blumberg technology; the contract provides for project expenditures of up to $56 million, and the modernization of up to 164 shounas in total.

In addition to revamping Egypt's wheat storage system, Blumberg Grain also plans to build logistics centers for perishable produce across Egypt that will leverage cutting-edge technology to maximize the longevity of perishable produce. Lastly, the company plans to build a $250 million manufacturing plant and export hub that will produce food security technology and equipment for the Middle East and North Africa (MENA) region. While competition for this contract has yet to conclude, the company has stated that Egypt is well-positioned to gain the manufacturing plant and related processing and packing facilities. The plant will create approximately 1,000 new jobs; KPMG estimates that the initiative will have a $1 billion economic impact during its first year, and a $7 billion impact over a five year period.

To read the full article, click here. For more news and information visit Blumberg Capital Partners.

Blumberg in the News

CNBC “I want to show you this one thing: How big is this show? You're seeing the Egyptian Minister of Supply who has come to Iowa to further a multi-billion dollar deal to buy secure storage bins from Blumberg Grain for their grain. Egypt is the biggest wheat importer in the world, but loses as much as 40% to spoilage. The delegation right now is in Chicago to figure out how they can have a commodities exchange in Cairo, and Blumberg, which is a real estate investor out of Florida, got into this secure storage business, and this is its first huge deal, billions of dollars."

Blumberg in the News

Blumberg Grain was featured in a CairoScene article this month titled "US TYCOON: USE YOUR LOAF, EGYPT", which proclaims that Egypt's bread crisis could soon be resolved by Blumberg, which is launching a new venture in Egypt to introduce new nationwide storage facilities that are set to prevent spoilage and reduce price volatility. An excerpt follows:

It was Marie Antionette who once said let them eat cake – well now a US business tycoon could soon have Egyptians scoffing some of the best loaf on the planet.

Philip Blumberg, head of Blumberg Capital Partners, has launched the tasty new venture after successive politicians failed to solve the riddle of lowering bread prices despite the relatively high cost of purchasing grain, thanks to the country’s poor credit rating.

He said: "Egypt is the largest importer of wheat in the world, but they have to buy it on the spot market. It’s crazy. The largest wheat buyer in the world is constrained by storage."

Blumberg has now reached a deal with Egyptian President Abdel Fattah el-Sisi to build 164 grain-storage facilities designed to prevent spoilage, reduce price volatility and eventually lead to a local commodities exchange.

To read the full article, click here. For more news and information, visit Blumberg Capital Partners.

Blumberg in the News

Blumberg Grain was featured in a CNBC article today titled "The American who wants to save Egypt's bread", which explores the recent activity and advancements of Blumberg Grain in Egypt. An excerpt follows:

The rising price of bread was one reason Hosni Mubarak lost power in Egypt. Food inflation is one reason his replacement, Mohammed Morsi, also lost the job. "Egypt is the largest importer of wheat in the world, but they have to buy it on the spot market," said Philip Blumberg of Blumberg Capital.

That may change.

Blumberg recently reached a deal with Egyptian President Abdel Fattah el-Sisi to build 164 grain storage facilities designed to prevent spoilage, reduce price volatility and eventually lead to a local commodities exchange.

"It's crazy," the American investor said. "The largest wheat buyer in the world is constrained by storage."

Blumberg, a Harvard Business School graduate who made his fortune in South Florida real estate, said his family has a history with agriculture, having farmed cotton and pecans in Alabama and tomatoes in Florida. He began to see the buildings he invested in as commodities, too.

"A building is nothing but a bundle of commodities, an assembly of copper, nickel, glass, steel and concrete," his son, David, told Africa Agribusiness.

Philip Blumberg began seeing the need for food security and storage in developing countries, and he decided to create a fund called Blumberg Grain to invest in projects.

To read the full article, click here. For more news and information, visit Blumberg Capital Partners.

Blumberg In The News

Philip Blumberg was recently interviewed by Amwal Al Ghad, a monthly issued magazine that covers all news about economy, Banks, investments, stock market, and all other related financial sectors in Egypt. An excerpt from the article follows:

Amwal Al Ghad En: What is the company's vision over the real estate sector in Egypt even the challenges it facing amid the political turmoil? In addition, what are the market's current demands?

Blumberg: First, my expectations in Egypt it will attract investments as soon as possible because investments in real estate travel very quickly. Secondly, the affordable houses are important and much needed in Egypt, which also the Egyptian government can assist. The housing sector should support the PPP system.

We think there are opportunities in the office-building sector that we can reposition them from the C to A class.

We look to the region of Egypt as it has more jobs; it is a promising market for exports and manufacture, more and above it is the great real estate residential sector for affordable houses.

The companies will not come if they will not see stabilization in Egypt. Therefore, we are looking now for US government support for Egypt

John Kerry, US Secretary of State, has allocated $250 million for Egypt; it will be released as soon as the IMF discussion is over, for the Egyptian government's projects. We believe they go to the infrastructure and job creation to help people.

There is another $ 750 million but the US government is waiting that how the Egyptian government could utilize the $250 million.

To read the full interview, click here. For more news and information visit Blumberg Capital Partners.

Blumberg in the News

Business Today Egypt published a Q&A with Philip Blumberg, chairman and CEO of the Blumberg Capital Partners group of companies and chairman of the firm's investment committee. An excerpt from the March edition follows:

Q: It has been said that investors are now showing their willingness to consider opportunities in the Egyptian real estate sector. How would you describe these investors?

BLUMBERG: I'd describe those investors as leading edge, and leading-edge investors success is key to attracting the larger mainstream companies and investors. It's this increase in economic activity that gets the real estate economy going as well.

We see long-term opportunities in quality office development, retail and residential projects. In the short term we see very considerable opportunity in the industrial and warehouse sectors. There is tremendous built-up demand for warehousing at ports, free zones and in the new projects being contemplated in the economic plan known as the Nahda, or Renaissance Plan.

These are more than just words, as we are preparing now to commit to a large scale investment in Egypt in this sector and to move to expand our manufacturing business with construction of a manufacturing plant and export hub in Egypt. The Hub will employ 1,000 Egyptians and potentially increase Egyptian exports by $6 billion (LE 40.39 billion) and the country's GDP by 2.2%.

We have faith in Egypt and in our working with government leadership see a very strong and decisive effort to generate and support economic development projects like ours. As long as this continues we are optimistic about prospects for Egypt.

To read the full article click here. For more news and information, visit Blumberg Capital Partners.